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Atlanta Fed lifts US Q3 GDP view to 4.7%

[NEW YORK] The US economy is growing at a 4.7 per cent annualized rate in the third quarter, the Atlanta Federal Reserve's GDPNow forecast model showed on Tuesday, following the latest data on construction spending and factory activity.

This was faster than the 4.1 per cent GDP growth pace calculated by the regional Fed's forecast program on Aug 30.

The Atlanta Fed program raised its estimates on consumer spending growth in the third quarter to 3.6 per cent from 3.0 per cent and private fixed investment growth in the third quarter to 4.3 per cent from 3.0 per cent.

Earlier Tuesday, the government said domestic construction spending edged up 0.1 per cent in July, while the Institute for Supply Management said its barometer on factory activity climbed to 61.3 in August, the highest level since May 2004.